What is a Quick Cash Sale?
The fastest way to sell any home is to sell it to a CASH buyer. This is because the cash buyer does not need to get qualified for a loan or wait for loan documents to be drawn up. Cash buyers can make decisions quickly. Cash buyers can also take care of all closing costs, back payments or taxes, or whatever it takes to get the deal closed.
A non-cash buyer typically requires about 30 days to close on a home – most of that time is spent waiting for the lender to approve everything. Additionally, lenders require inspections, surveys, an appraisal, and possibly even repairs that cash buyers do not require. A cash buyer can close virtually immediately.
The disadvantage to selling for cash can be the price. Virtually 100% of cash buyers are investors that are buying the home so that it can eventually be resold. This “flipping” of the property means that the cash buyer has certain overhead expenses that must be covered in the transaction.
For example, the cash buyer will have to pay the following expenses:
- Closing costs on the purchase (2%)
- Commissions on the resale (6%)
- Closing costs on the resale (3%)
- Monthly carrying costs until the home is resold (~4-5% typical)
- Needed repairs/remodeling ($5-10K to $100K+)
These costs total to ~15% or more of the resale value of the home, which means that cash buyers can only afford to buy the home at 65% to 75% of its full market value in order to make a modest profit.
When you see a sign saying “I Buy Houses For Cash” it means “I’ll pay you about 70% of the homes value, and do it fast”. For some people, such as sellers with lots of equity that need or want money quickly, this is a great deal. For others with little or no equity, or people who want to make more money selling the home, this is not an option.
Questions About Quick Cash Sale
How quickly can I sell a home?
Normally in as little as 2-3 days. It can be as little as 1 day in cases where the home is in risk of foreclosure. It can take longer, in cases where there are title (ownership) issues.
Does everyone on the deed have to agree to the sale?
Yes, unless one party has a divorce decree or other agreement allowing them to sell the property unilaterally.
Is the price negotiable?
Everything is negotiable. However, I, like any other cash buyer, am not going to pay more for the home than I can afford to resell it for with a reasonable profit to cover risk and expense.
Why sell to Stacy DeSoto?
I am a true CASH buyer. Most investors that represent themselves as CASH buyers are really wholesalers that FLIP your home to companies like me for a fee. This means, they can’t offer as much for your home (more $ to them and less to you).